Panic As Naira Crashes To ₦520 Per Dollar At Parallel Market

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Naira, Dollar, Parallel Market

The naira on Monday depreciated to a record low of 520 against the United States dollar at the parallel market as scarcity of the greenback continued to keep the exchange rate in a free fall mode.

Naira Crashes To All Time Low Of ₦516 As Dollar Scarcity Persists

The local currency had closed at 516/dollar on Friday, after hitting 510/dollar and 507/dollar last Thursday and Tuesday, respectively.

Economic and financial experts have blamed the downward slope of the local currency to the demand for dollar for school fees payment overseas as well as Personal Travel Allowance by intending travellers at the parallel market.

The Naira Is Dead: Lets Redenominate The Currency Before Its Too Late

This is just as Reuters gathered that retail currency traders tried to digest the Central Bank of Nigeria’s new decision to sell dollars to retail users through commercial banks.

The CBN is planning to sell $1m weekly to each of the country’s 21 commercial banks at a rate of N375 to clear a backlog of demand for retail users and try to narrow the premium between the official and black market rates.

Naira Trades At 494/$ On Christmas Day, From 268/$ On December 25, 2015

Retail currency users buy dollars from licensed Bureaux de Change operators. However, due to the CBN’s inability to meet dollar demand, the BDCs have tended to source dollars from private sources and resell at a much higher margin, fuelling the black market.

Datboyjerry

Datboyjerry

I am but your herald boy in the art of the pen.. An eccentric Environmental Biologist smouldered in the glorious epiphany of online journalism. If you ever find my article unduly insipid, sue me and i’ll refund you...

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